Financing your education

Provided By:

(NC)-Any type of education is beneficial and there are costs involved. The key is knowledge and management. The cost of post-secondary studies in Canada has risen dramatically over the past 15 years and university undergraduate tuition fees have nearly tripled since 1990 and college fees have more than doubled (Source: "Working to Learn: Meeting University and College Costs", June 29, 2006, Canadian Student Council of Learning)

Although employment earnings and personal savings are the principal sources of funds for most post-secondary students, the rising costs of education is making it increasingly difficult for part time income and savings to cover these costs alone. (Source: "Working to Learn: Meeting University and College Costs", June 29, 2006, Canadian Student Council of Learning) More and more students are taking on debt to cover the cost of their post secondary education. Although debt is often viewed as a scary word, if it is balanced with a sense of financial responsibility and a set budget, you can control it instead of letting debt control you.

All About Student Loans

Once all the bursaries, grants, scholarships and savings have been summed up, it still may be possible to be one of the thousands of students that require financial aid. Although government student loans tend to be top of mind amongst most, it is important to also consider what financial institutions like CIBC are offering in terms of loans and lines of credit, as each hold their own unique benefits.

Government Student Loan

Bank Student Line of Credit/Loan

What's the Same

• Government student loans are intended to cover only your basic needs and may not cover all your additional expenses.

• You must inform the government each year that you are still a student.

• Within 6 months of graduating, you must start repaying the principal with interest (varies by province)

• Pre-authorized payment plans are available so your loan payments are withdrawn directly from your bank account each month.

• Bank student lines of credit/loans are intended to supplement your savings and may not cover all your out-of-pocket school expenses.

• You must inform the bank when you graduate

• After graduation you have 6-12 months to start repaying your principal

• Pre-authorized payment plans are available so your loan payments are withdrawn directly from your bank account each month.

What's Different

• Government student loans provide up to 60% of your assessed need.

• The size of government student loans varies among students based on the assessed need.

Available to students enrolled in at least 60% of a full course load

• Government student loans do not charge interest while you are in school so you don't make payments until you graduate.

• You can receive as much as $40,000 over 4 years from a financial institution (more funds are available for certain disciplines like Medicine).

• The eligibility restrictions for these loans are not based on assessed need.

• In most cases, someone else will be required to guarantee your loan.

• Available to full- or part-time students.

• While you're in school, you make interest payments only on the amount you have borrowed but you can make payments on the principal at any time.

• You can make a payment towards your loan at any time. This can help you get a head start on future repayments and establish a good credit rating.

For more information on financial guidelines visit http://www.cibc.com/ca/features/financial-guidebook.html

Entering university or college is an exciting and enriching adventure. Find out more information on student borrowing solutions by calling 1-800 465 CIBC (2442) and talk to a CIBC advisor today or simply visit our website at www.cibc.com.